Sears to close Kauai store in July, laying off 41 workers

The Sears store on Kauai will be the second Sears to close in Hawaii in less than two months.

Sears is closing its store and auto center at the Kukui Grove Center at the end of July, laying off 41 employees, said Sears Holdings spokesman Howard Riefs. The store at 3-2600 Kaumualii Highway will begin a liquidation sale May 30.

In March, Sears announced that it would lay off 327 when it shuts its Ala Moana Center location next month.

"As a part of the ordinary course of business, we close stores for a variety of reasons," Riefs said. "This store is being closed because the lease was not renewed. The store closures are part of a series of actions we’re taking to reduce ongoing expenses, adjust our asset base and accelerate the transformation of our business model."

Sears said it is moving to an integrated retail model to focus investments on serving customers at its stores, online and at home.

Affected workers can apply for positions at other Kmart and Sears stores, Riefs said. He added that the closure also will affect tenants inside the store.

The department chain was one of the first tenants to move into Kukui Grove Center in 1982. It was located near the Lihue Civic Center before the move.

Other Hawaii Sears stores, including those at Pearlridge Center and Windward Mall, will remain open, as will the Sears Distribution Center, the spokesman said.

Sears made the announcement to its employees Wednesday, according to the Garden Island newspaper.